12/09/2018

Making Tax Digital

Making Tax Digital

 

When does it come into effect?

April 2019April 2020
·         For VAT registered businesses/organisations with a turnover above the VAT Threshold (Currently: £85,000)·         For Income Tax (Self-employment or from property) – Exemption for a turnover below £10,000

·         For Corporation Tax

Exemptions will be given to those that cannot file digitally due to age, religion or remoteness of location.

 

What do you need to do?

  • Keep records in a digital form
  • Ensure these records are kept up to date
  • File VAT returns directly from the software where your digital records are stored

 

What software is compatible?

There are many software suppliers compatible with making tax digital, there are a few listed below:

·         Xero (Recommended)·         Quickbooks
·         Sage One·         Sage Line 50 (If upgraded to v24)

The full list can be found here

 

Can I use Spreadsheets?

Spreadsheets are permitted, but are not recommended. If they are used, they will need to be combined with a third party software using API’s to ensure there is a seamless flow of data to HMRC from the business. It is also likely that the spreadsheets will need to be kept in a certain format dictated by HMRC.